Shareholders Will Probably Not Have Any Issues With William Penn Bancorporation's (NASDAQ:WMPN) CEO Compensation

Performance at William Penn Bancorporation (NASDAQ:WMPN) has been reasonably good and CEO Ken Stephon has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17 November 2021. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for William Penn Bancorporation

How Does Total Compensation For Ken Stephon Compare With Other Companies In The Industry?

At the time of writing, our data shows that William Penn Bancorporation has a market capitalization of US$186m, and reported total annual CEO compensation of US$646k for the year to June 2021. That's a notable increase of 18% on last year. We note that the salary portion, which stands at US$428.1k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$890k. So it looks like William Penn Bancorporation compensates Ken Stephon in line with the median for the industry. Moreover, Ken Stephon also holds US$741k worth of William Penn Bancorporation stock directly under their own name.

Component	2021	2020	Proportion (2021)
Salary	US$428k	US$368k	66%
Other	US$218k	US$180k	34%
Total Compensation	US$646k	US$548k	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. It's interesting to note that William Penn Bancorporation pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

William Penn Bancorporation's Growth

William Penn Bancorporation's earnings per share (EPS) grew 26% per year over the last three years. It achieved revenue growth of 39% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has William Penn Bancorporation Been A Good Investment?

William Penn Bancorporation has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for William Penn Bancorporation that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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